The factory of the legendary Riga Balsam has faced financial difficulties. One of the reasons was a drop in alcohol consumption.
Shareholders of the Latvian alcoholic beverage producer Amber Latvijas balzams are planning to consider the question of the company's further operations and possible initiation of insolvency proceedings at a meeting in early November, Office Life writes.
The manufacturer of the legendary Riga Balsam has faced financial difficulties due to problems in both domestic and foreign markets. One of the reasons was a drop in alcohol consumption. Sales of Riga products particularly plummeted in Cyprus, which is the main market for the factory.
The situation was also affected by an increase in excise duty rates, which made alcohol in Latvia one of the most expensive in the EU.
As a result, in the first half of this year, the company's turnover decreased by a third and amounted to 24.6 million euros. It is also reported that the manufacturer's tax debt exceeded 28 million euros.
To optimize production, the company has already moved part of its facilities to Lithuania, where champagne of this brand is now produced.
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